Use 'tax basis' in a Sentence

I owed a large amount of tax the year that I sold my investment property because the tax basis had been greatly reduced by all the depreciation I had taken while I had owned it, but I can't complain because the depreciation was deductible.

19
people found this helpful

Someone who inherits an appreciated asset may be able to use a stepped-up tax basis as their tax basis for the asset rather than the tax basis of the decedent.

17
people found this helpful

You should try to make sure that you understand how the tax basis works and that you are always doing it properly.